HomeMy WebLinkAboutOrdinance 2112 N.C.S. 05/07/2001ORDINANCE NO. 2112 N.C.S.
Seconded
By Councilmember
Janice Cader-Thompson
AN ORDINANCE OF THE CITY OF PETALUMA AMENDING THE PETALUMA
LAW, RELATING TO THE REFINANCING OF REVENUE BONDS
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF PETALUMA AS FOLLOWS:
Section 1. Findings and Determinations. The City Council of the City of Petaluma
hereby finds and determines as follows:
A. The City has, by Ordinance No. 1026 N.C.S. and Ordinance 1843 N.C.S., added
Chapter 4.08, entitled "Bond Issue Procedures" to the Petaluma Municipal Code (the
"Revenue Bond Law").
B. The Revenue Bond Law authorizes the City of Petaluma, as an exercise of its
municipal affairs powers as a charter city, to issue revenue bonds for specified
enterprise projects, tlirough the utilization of the Revenue Bond Law of 1941 (the
"'41 Act"), with certain modifications.
C. Neither the Revenue Bond Law nor the '41 Act explicitly authorize the issuance of
revenue refunding bonds.
D. The City entered into a Lease Agreement in November 1990 in the principal amount
of $6,600,000 (the "1990 Lease") for the purposes of financing Zone N Water
System Improvements, and caused to be executed and delivered Certificates of
Participation ("1990 COP's"), representing the right to receive Lease Payments from
the City under the 1990 Lease.
E. The 1990 Lease is an obligation payable from the general fund of the City, and may
not be refunded under existing State law provisions permitting the issuance of
refunding revenue bonds.
F. The City has determined that .interest savings will be realized if the 1990 COP's are
refunded.
G. The City wishes at this time to amend its Revenue Bond Law to explicitly authorize
the issuance of revenue refunding bonds.
Section 2. Amendment of Revenue Bond Law. In order to authorize the refinancing of
the City's revenue bonds, as an exercise of its municipal affairs powers as a charter city, the City
Council does hereby amend the Revenue Bond Law, as follows:
Ord. 2112 NCS
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Section 4.08.020 of Chapter 4.08 shall be amended to add paragraph D, thereto, which
shall read as follows:
D. The refunding of bonds or other obligations of the City, so long as: (i) the proceeds of
such bonds were applied to the acquisition or construction of projects satisfying the purposes set
forth in paragraph A, B or C above; and (ii) such bonds or obligations were payable from, or
were in fact paid from, revenues generated by any of the enterprises specified in paragraphs A, B
or C above.
Section 3. Effective Date. This Ordinance shall take effect 30 days after its final
passage.
Section 4. Advertisement. The City Clerk is hereby directed to post or publish the
ordinance for the period and in the manner required by the City Charter.
Section 5. Severabilty Clause. If any section, subsection, sentence, clause, or phase of
this ordinance is for any reason held to be invalid, such decision shall not affect the validity of
the remaining portions of this ordinance. The Council hereby declares that it would have
adopted the ordinance, and each section, subsection, sentence, clause, or phase thereof,
irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases
be declared invalid.
INTRODUCED and ordered posted/P~ this 16`h day of _April, 2001.
ADOPTED this 7th day of May , 2001 by the following vote:
AYES: O'Brien, Healy, Torliatt, Maguire, Moynihan, Vice Mayor Cader-Thompson, Mayor
Thompson
NOES: None
ABSENT: None
E. Clarl Thompson, Mayor
ATTEST:
APPROVED AS TO FORM:
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. -~ ~- ,
Paulette Lyan, Deputy City Cl Ric rd R. Rudnansky, Ci
Ord. 2112 NCS
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